posted 08-06-2007 08:07 AM                  

Nardelli, who became chief executive of The Home Depot Inc. in 2000, resigned abruptly in January after criticism over his pay and the company's slumping share price.

"Chrysler has many deeply talented and dedicated people, and I am confident that together we can continue the momentum of Chrysler's recovery," Nardelli said in the statement.

Former Chrysler executive Wolfgang Bernhard, a senior adviser to Cerberus, had been widely expected to be named chairman. He was offered a position with the company but elected not to accept it.

Tom LaSorda, Chrysler's chief executive since Jan. 1, 2006, was named vice chairman and president of Chrysler, reporting to Nardelli. LaSorda, who took over the top job when Dieter Zetsche returned to Germany to head up DaimlerChrysler AG, had been expected to remain in that position once Cerberus took over.

On Friday, DaimlerChrysler transferred an 80.1 percent stake in Chrysler to New York-based Cerberus Capital Management LP, one of the world's largest private equity companies, in a $7.4 billion deal. The German automaker, which is to be renamed Daimler AG, retained a 19.9 percent interest in Chrysler.

Cerberus Chairman John Snow previously had said Cerberus planned to keep Chrysler's management team in place and give it the freedom to implement its restructuring plan, which currently calls for shedding 13,000 hourly and salaried jobs in the U.S. and Canada by 2009.

"Bob has a proven track record of success and an unwavering focus on performance, and brings deep operational experience and a broad industry background to Chrysler," LaSorda said in the statement. "His background in operations will provide valuable knowledge as we continue Chrysler's turnaround."

Nardelli's wide-ranging business experience and the fact that he happened to be available led Cerberus officials to snap him up, a person with knowledge of the move said. The person spoke on the condition of anonymity because the announcement had not yet been made.

United Auto Workers leaders were consulted on Nardelli's selection and gave their approval, the person said.

Nardelli helped increase revenue and profits at Home Depot and increase the number of stores the company operates. But the public discussion about his pay and the company's stock price became a distraction.

His compensation at Chrysler will be based solely on the success of bringing the automaker back to financial health, the person said.

Besides Nardelli and LaSorda, the 11-member Chrysler board now includes representatives from Cerberus and DaimlerChrysler, as well as independent directors.

Chrysler's chief operating officer, Eric Ridenour, decided to leave the automaker after 23 years, Chrysler said.

posted 08-06-2007 09:45 AM                  

Just think, a car dealership with no salesmen, self service, and you ring up the car.

posted 08-06-2007 02:53 PM                  

quote:

---

Originally posted by Tennessee Cat:
Home Depot was an exploding company with incredible employee loyalty and soaring stocks. The original owners cashed out and brought Nardelli in.
All of the loyalty from these stakeholders was replaced with dissension and frustration. While he made changes that made sense on paper, it destroyed the successful culture that made Home Depot great.
Now it is selling off divisions and slowly taking second place to Lowe's that has had a consistent plan and motivated associates.
This is just my opinion from working with many of the buyers, merchandise managers, reps and other manufacturers.

---

posted 08-08-2007 03:03 PM                  

Robert Nardelli now brings his slash-and-burn cost-cutting style to poor old battered Chrysler Corporation. It’s hard to remember the glory days at Chrysler when every member of the “Dream Team” management group was a genuine automotive mover and shaker.

Lee Iacocca, Bob Lutz, Tom Gale, Tom Stalkamp, Francois Castaing, and Dennis Pawley. You couldn’t have had better guys if you made a deal with the devil and specifically created each one to be the best at his specialty. It was a wondrous time, and made us feel good to know that those guys had all come together to run that company.

The other miracle that’s worth mentioning is Chrysler’s purchase of Jeep, which turned out to be a great marketing coup, and delivered into Chrysler’s employment rolls dozens of highly skilled specialists who provided enormous strength and depth as backup for the stars. The Chrysler Dream Team wasn’t just good, they were also lucky, which is perhaps the most important gift of all.

Now Chrysler will get a bitter dose of All-Purpose Management Methodology Number 2007-MBA/BS, also known as “Rape The Place, Grab The Money, And Leave Town.”

posted 08-08-2007 03:58 PM                  

Even with everything that's going on in the meeting rooms at the Management Briefing Seminars, the changes at Chrysler continue to dominate the buzz in the hallway between sessions and the chatter at cocktail parties.

Here are key issues raised by some of the industry's thought leaders, based on the bazillion conversations I've had up here in Traverse City:

Bankers played a key role in convincing Cerberus to make Bob Nardelli the CEO, despite the earlier protestations of John Snow that Cerberus had faith in the Chrysler team and LaSorda was their man.

It wasn't necessarily a bad thing that LaSorda didn't get the CEO job because his skills are in other areas.

No matter what anyone says now, Tom LaSorda's tenure at Chrysler likely will end not too long after the ink dries on the new contract with the UAW.

With Wolfgang Bernhard and Eric Ridenour out of the picture, Chrysler desperately needs a product guru of the caliber of Bob Lutz.

It isn't that Frank Klegon is a bad product guy. But with cost-cutting being such an apparent priority in making Chrysler profitable, there needs to be a great presence to remind the private equity crowd that in the car biz you can't succeed without great product.

Or so goes the popular thinking up here.

Even worse would be for Bob Nardelli to assume that just because he likes cars he's a car guy. Outsider Ron Zarrella made that mistake at General Motors and the result was the Pontiac Aztek, which is the last thing Chrysler needs.